-
French property market: Six key points from latest notaire data
Signs of recovery in view from post-Covid slump although sales numbers and prices remain low
-
Does working on a bank holiday in France impact pay?
The company, sector, and collective staff agreements can all affect workers’ entitlement
-
MAP: house price falls in France - see how your area fares in new notaire data
Only a handful of cities avoided a fall in price at the start of 2024
What are the tax implications of selling a second home in France?
If your property is worth more than €150,000, you must appoint a French tax representative. They usually charge 0.5-1% of the sale price
Reader question: We are selling our second home in France, bought 23 years ago. Will we have to pay capital gains tax to the French government and duty on items we want to take back to England?
While the UK was an EU member-state, the capital gains rate was 19% tax plus a 7.5% social charges levy for EU residents. Non-EU residents usually pay the full social levy of 17.2%, so the bill increased from 26.5% to 36.2% post-Brexit.
Recently, however, the French reversed their decision over how to treat gains of UK residents, to align them again with EU residents.
Read more:French social charge refunds post-Brexit: who can benefit?
Read more:Brexit: charges victory for UK pensioners in France and second homes
In addition, capital gains tax reduces, after five years of ownership, to nothing for people like you who have owned their property for 22 years or more. From five years of ownership, social charges also decrease, reaching zero after 30 years.
If your property is worth more than €150,000, you must appoint a French tax representative. They usually charge 0.5-1% of the sale price.
Regarding duty, if you are moving permanently you will benefit from ‘Transfer of Residence Relief’. However, when moving goods from a second home to your main UK residence, you may have to pay VAT (normally at 20%, although some items are exempt).
Customs duties at variable rates depending on the item (some zero) will also be applied to the total value of the goods if you exceed your ‘personal allowance’ of £390 per person.
It may be possible to claim ‘Returned Goods Relief’ on VAT and duties for goods exported from the UK and then re-imported within three years. Duty is not payable if you can prove items were made in the UK or EU.
To understand more about French income tax declarations download our helpguide, Income Tax in France 2022 (for 2021 income). As a digital, downloadable guide, priced €14.90, it was last updated on April 8.Order your copy here
Related stories:
Haggling, insurance, leaks: Five updates for property owners in France
Pools, prices, islands: Five updates for property owners in France
Must we pay French capital gains on a house owned for almost 30 years?